In last week’s roundup we discussed Snapchat, Amazon ditching its discounts, and the rise of ad blocker. If you missed it, you can check it out here. If not, then we’ve got some interesting news for you this week.
Are Loyalty Schemes Broken?
True customer loyalty does exist, but why are there so many unused loyalty points on the high street? 86% of consumers say loyalty is primarily driven by likeability, and 83% say trust rather than reward schemes according to a report by Rare. Purchases themselves are driven by price (81%) quality (80%) and convenience (55%). Under four key metrics (ease of use, delivery on promise, personalisation and purchase experience) a survey of over 1,000 UK consumers revealed that many of the high street’s loyalty schemes are underperforming.
Ben Pask, founder at Rare states that the biggest learning for brands is distinguishing between implicit and explicit drivers of loyalty. He explains that implicit drivers of loyalty are quality of service and brand trust, but explicit drivers are for example points and example rewards.
“Explicit drivers, in terms of loyalty schemes, are not driving value for [brands] in the right way – they are not incentivising the right behaviour or enticing people to come back…Brands don’t necessarily focus much time on that because it is always exciting to create a new app to incentivise people through explicit drivers of loyalty. It’s great to have that ability but if trust is low and quality of service doesn’t ring true, you are wasting your time, effort and energy. It’s about taking a step back and looking at the behaviour you want to incentivise.”
So what do we do about this? Well, personalisation is a key theme for brands in building relationships with consumers to create loyalty. The report shows that many brands aren’t performing well enough in this area. “It’s about the use of data and recognising what people want and what drives them to come back” Pask says. Brands that do well in “offering a personalised service” include Starbucks, Amazon and Tesco.
The research suggests that loyalty is an emotional response rather than functional. Rachel Barton, Managing Director at Accenture believes that “transactional loyalty is dead. With over £450m dormant loyalty points in the UK alone”. She argues that “brands need to see loyalty in emotional terms and not just reward consumers for buying from them. Marketers must understand how to use experience and relationship to appeal to thee emotional side of consumers, providing something of real value”
Consumers Searching for Digital Detox
The proliferation of digital devices has caused a relentless stream of communication bombarding consumers. The ‘always-on’ obsession is having a detrimental effect and are leading consumers to search for ways to avoid the fast-paced experience of modern life.
London’s first ever naked restaurant The Bunyadi opened last month. There are no phones allowed, everyone is unclothed, food is cooked over a fire and the tables are lit with candle light. Their idea was to liberate people from the outside world. Similarly, the drinks brand Innocent conceived the Unplugged festival, which now in its second year aims to offer people a weekend “off the grid to escape their busy, stressful city lives where they are constantly connected to friends, email and overloaded with information” says Jamie Sterry, Brand Activation Manager.
“Technology is a great thing but it’s important to switch off once in awhile. We were concerned that after year one [of the festival] the digital detox trend would have moved onto something else, but instead it has grown and we see more statistics and information about how people are craving time off the grid.”
A report by JWT suggests that consumers’ need for a change of pace is more likely to encourage people to switch off rather than turn to entertainment and fantasy. Innocent’s Sterry points out that the detox trend is only going to get stronger. Very interesting changes indeed.
3 Reasons Why You Should Localise Your Social Media Posts
To some brands, this may not be beneficial at all, but to others it’s integral to their marketing campaign. Here are three reasons you should consider localising your posts to social media:
It Makes You Look More Customer Focused
Brands are constantly looking for ways to improve their customer experience, and offering localised content is one very effective way of doing so. When you post content that has been clearly designed for a certain geographical audience, it doesn’t go unnoticed. Customers can see you’re focussing on their needs as opposed to just running the brand messaging.
You Can Demonstrate Cultural Sensitivity
What’s acceptable in one place may absolutely not be in another. Religion is a tricky subject to touch on in marketing and wisely enough, brands tend to avoid it. However, if a particular religious custom is pervasive in a country then you need to acknowledge that it exists on social media too. You can increase your local affinity by showing that your brand understands its consumers at a deeper level.
It Encourages Comments and Shares
You truly reap the benefits of social media when you elicit feedback from your fans. But to do this, you need to offer fans an opportunity to identify with what you’re posting. If local fans see things they recognise, you’ll have a better shot at reaching them on an emotional level.
Why Pharma Marketers are Taking to Social Media
In the past pharma brands tended to avoid social media. The strict regulation of the industry’s advertising communication still acts as a motivator for the industry to be cautious with social content, however more and more brands are taking to social media nonetheless. So what’s changed?
It seems that the brands have finally recognised the opportunity for engagement with social media. Social content doesn’t just have to be about the business and its products. The most successful pharma brands on social media are the ones that focus on sharing content surrounding the values of the company its consumers. They know what important to their followers and they base their content on connecting with them.
They’ve also realised that social media is going nowhere. Even if they ignore it, their customers aren’t. Consumers know that if they have an issue with a product or service all they have to do is tweet the company to sort the issue out. So why shouldn’t consumers expect this from pharma brands also? If a brand ignores conversation on social media they don’t just risk their reputation, they lose the opportunity to create a community around their brand. According to Neilsen, 83% of people value recommendations from friends and family over traditional forms of advertising, so pharma companies can take advantage of this. Regardless of the industry a brand is in, they can still benefit from that.
Brands that are on social media are allowed the opportunity to spot the signs of a brewing crisis and solve the issue before it becomes huge. If you ignore the signs or fail to spot complaints at all then you’re going to be playing catch up on your own crisis. In the pharma industry, people reporting adverse reactions might not visit their GP, they might take to twitter and ask their followers if anyone else has experienced the same symptoms. Before you know it there could be an exponential amount of people not using your product from fear of adverse reaction.
Amazon Tests Its Personalised Video Ads
Amazon is currently experimenting with personalised video, showing clips featuring images and texts about products the US retailer has detected user interest in. They used to just show customised static display ads on third-party sites, but they’ve decided to up their game as video could have the potential to be more eye-catching and appear more frequently.
The new ad unit lets the advertiser create thousands of versions of an ad on the fly, in Amazon’s case by using graphics templates. It is said that every advert will be different and will pull together subjects based on what Amazon’s algorithms have detected that the user will be interested in seeing more of.
Graeme Smith, Managing Director of Amazon’s software development centre said “This is something we’ve only experimenting with at very small scales. They have been out there in the wild.” He wouldn’t admit where the video ads appeared but he said the technology was something Amazon were excited about.